"Connecting communities, empowering nations: Unifying the Regional and Global Economy ."

India’s development journey post-independence has been marked by remarkable achievements as well as missed opportunities. The ambitions were clear: to achieve rapid growth, accumulate resources, and then invest in essential public goods like education, health, and infrastructure. However, looking back, it becomes evident that the sequencing and prioritization of these goals may have been misjudged.

1. The Fear of Educated Unemployment: A Political and Social Dilemma

In the early years after independence, one of the pressing concerns was the fear of “educated unemployment.” Policymakers were apprehensive that if large sections of the youth became educated without immediate job opportunities, it would create political instability. The worry was that educated but unemployed youth could become a potent force of unrest, potentially disrupting the fragile democratic setup. While this fear may have seemed reasonable in a newly independent and resource-constrained country, in hindsight, it hindered the aggressive expansion of education, particularly at the primary and secondary levels.

Today, India’s experience demonstrates that education itself becomes a driver of job creation. The educated not only seek jobs but also become entrepreneurs and job creators. Had we invested more systematically in early-stage education, the cumulative impact on literacy, productivity, and innovation would have been far more significant.

2. Success in Higher Education but Neglect in Primary Education

It would be unfair to say that India did poorly in education overall. Our focus on higher education in the early decades led to the establishment of world-class institutions such as the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs). These institutions have been instrumental in creating a global talent pool that spearheaded the IT and knowledge revolution, putting India on the world map.

However, the glaring gap was in primary and secondary education. According to World Bank data, until the late 1990s, India’s literacy rate lagged significantly behind other developing countries. Even today, issues like poor learning outcomes, inadequate infrastructure in schools, and teacher shortages remain pressing concerns. While higher education created excellence, the neglect of foundational education limited the spread of inclusive growth.

3. Infrastructure: Roads, Railways, and Beyond

In the initial decades after independence, infrastructure development, particularly in roads and railways, did not receive the attention it deserved. India had a stronger railway network than China at the time of independence. Yet, over the decades, China made strategic investments that transformed its transportation infrastructure. Today, China boasts the fastest and most extensive high-speed rail network in the world, while India continues to play catch-up.

The consequences of this neglect are profound. Railways are not just about passenger mobility; they are critical for freight movement, which directly impacts the cost structure of goods. Currently, road transport carries the majority share of freight traffic in India, which is less efficient and more expensive compared to railways. While the government is now investing in the Dedicated Freight Corridors and semi-high-speed trains, these are corrective measures to address decades of underinvestment.

4. Airports and Connectivity: A New Realization

Interestingly, India’s realization of the importance of air connectivity in smaller towns and cities has come much later. Regional air connectivity can unlock enormous economic potential in Tier-2 and Tier-3 cities, enhancing trade, tourism, and investment. The government’s UDAN (Ude Desh ka Aam Naagrik) scheme is a positive step in this direction, but this too is a late realization of the vital role regional airports can play.

As of 2024, India has over 140 operational airports, and smaller cities are increasingly being linked to major economic centers. However, had this realization come earlier, the economic integration of hinterland regions with metropolitan areas could have advanced much faster.

5. The Road Ahead

Data from the IMF and World Bank suggests that India’s current investment in infrastructure stands at around 6-7% of GDP, lower than China’s consistent investment of around 8-9% in the past two decades. This difference reflects in the quality and scale of infrastructure. The lesson here is clear: infrastructure development, particularly transport and logistics, must be prioritized to enable economic growth and competitiveness.

On the education front, the Annual Status of Education Report (ASER) continues to highlight severe gaps in reading and arithmetic skills at the primary school level, showing that investment is not just about building schools but ensuring quality education.

Learning from the Past, Planning for the Future

India’s early development choices reflect both foresight and missed opportunities. While it was pragmatic to focus on certain sectors like higher education and industrial growth, the neglect of primary education and infrastructure created long-term constraints. Today, with stronger financial resources and better planning capabilities, the need is to invest systematically in both human capital and physical infrastructure.

This calls for not only policy commitment but also political will and institutional accountability. The challenges of the past offer critical lessons: fears of political instability or immediate returns should not overshadow long-term strategic investments. As India moves forward, balanced growth with a robust focus on education, connectivity, and logistics will determine whether it can realize its full economic potential.